It’s the same stale story—corn prices are flat and there’s still a lot of crop in storage.
Soybeans, on the other hand, seem to have much greater potential. Analysts believe there could be a bull run in sight, and it could be led by USDA decreasing the soybean yield in its Nov. 9 crop production report.
Chip Nellinger, risk management consultant and futures market specialist with Blue Reef Agri-Marketing, Inc., thinks drier weather in Illinois and Indiana later in the season is the cause of dwindling soybean yields.
“There’s probably room that the USDA could cut bean yields a little bit—not talking three bushels, but a half bushel to a bushel,” he told U.S. Farm Report host Tyne Morgan.
Even though some farmers are still harvesting their crops, planting decisions are being made now. If soybeans see a price rally, Jim McCormick, senior broker and market commentator of Allendale, Inc., thinks it will buy more soybean acres.
“About a year ago, I kept thinking we were going to plant more beans than corn, and I really thought this might be the year we did because fiscally, the farmer has been very tight,” he said. “It’s a worse situation this year because we never got the price rally they really wanted.”
“The banker was already involved las spring—I think he’s going to be more involved this spring and that could force additional soybean acres,” said Nellinger.
Watch Nellinger and McCormick’s full commentary on U.S. Farm Report below.